U.S. consumer prices showed an increase, while the minutes from last month’s Federal Reserve meeting showed policymakers’ growing concern about inflation and a general agreement to start tapering asset purchases soon. Rate-hike expectations was brought forward by traders but lowering the projected peak. The S&P 500 reversed a three-day losing streak at close yesterday, as investors digested the third-quarter earnings. The Dow jones remained unchanged, whilst the S&P 500 rose by 0.30% and the Nasdaq by 0.73% also.
Asian stocks markets rose this morning as the dollar eased and longer-dated treasury bonds rallied on Thursday as investors reckoned on inflation bringing forward rate hikes around the world. Japan’s Nikkei climbed 1%. The shanghai Composite was marginally softer while Hong Kong markets were closed for holidays.
European stocks rose on Wednesday as upbeat earnings forecast from German software group SAP and robust quarterly sales for French luxury goods maker LVMH helped soothe worries about inflation. After some weakness at open, the pan-European STOXX 600 index hit two-week highs, and closed up 0.7%, as did the German DAX. France’s CAC 40 rose 0.8%. A decline in banks led to UK’s FTSE 100 gaining only 0.2%, while lender heavy indices of Spain and Italy lagged. Worries about central banks exiting their pandemic-era stimulus, a global energy crunch and signs of elevated prices have all dampened the outlook for economic recovery, with the STOXX 600 cutting monthly gains to trade up about 1% after stumbling 3.4% in September.
The Russian stock market ended trading in the red following the falling oil. The Moscow Exchange index fell by 0.47% to 4243.92 points. The RTS index fell by 0.79% to 1,855.11 points.
Crude oil for delivery in November fell 0.10% or 0.08 to hit $80.56 a barrel, while the December Brent oil contract fell 0.18% or 0.15 to trade at $83.27 a barrel. Crude oil for delivery in November fell 0.10% or 0.08 to hit $80.56 a barrel, while the December Brent oil contract fell 0.18% or 0.15 to trade at $83.27 a barrel.